I need calculation clarification on the areas in red. Thank you!

Sheridan Corporations trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

		Debit		Credit
Cash		$27,700
Accounts Receivable		60,000
Inventory		22,500
Land		64,900
Buildings		88,500
Equipment		32,000
Allowance for Doubtful Accounts				$430
Accumulated DepreciationBuildings				27,500
Accumulated DepreciationEquipment				15,800
Accounts Payable				19,100
Interest Payable				0
Dividends Payable				0
Unearned Rent Revenue				7,600
Bonds Payable (10%)				44,000
Common Stock ($10 par)				27,000
Paid-in Capital in Excess of ParCommon Stock				5,400
Preferred Stock ($20 par)				0
Paid-in Capital in Excess of ParPreferred Stock				0
Retained Earnings				89,570
Treasury Stock		0
Cash Dividends		0
Sales Revenue				561,000
Rent Revenue				0
Bad Debt Expense		0
Interest Expense		0
Cost of Goods Sold		398,000
Depreciation Expense		0
Other Operating Expenses		37,400
Salaries and Wages Expense		66,400
Total		$797,400		$797,400

Unrecorded transactions and adjustments:

1.		On January 1, 2020, Sheridan issued 1,000 shares of $20 par, 6% preferred stock for $21,000.
2.		On January 1, 2020, Sheridan also issued 1,000 shares of common stock for $24,000.
3.		Sheridan reacquired 320 shares of its common stock on July 1, 2020, for $46 per share.
4.		On December 31, 2020, Sheridan declared the annual cash dividend on the preferred stock and a $1.40 per share dividend on the outstanding common stock, all payable on January 15, 2021.
5.		Sheridan estimates that uncollectible accounts receivable at year-end is $6,000.
6.		The building is being depreciated using the straight-line method over 30 years. The salvage value is $6,000.
7.		The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,200.
8.		The unearned rent was collected on October 1, 2020. It was receipt of 4 months rent in advance (October 1, 2020 through January 31, 2021).
9.		The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.

CALCU 6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $6,000. 7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,200. 8. The unearned rent was collected on October 1, 2020. It was receipt of 4 months' rent in advance (October 1, 2020 through January 31, 20. 9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or reco (Ignore income taxes.) Your answer is partially correct. Try again. Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount No. Account Titles and Explanati, Debit Credit 1. Cash 21000 Preferred Stock 20000 Paid-in Capital in Excess of Par-Preferred Stock 1000 2. Cash 124000 Common Stock 10000 OULUN HELL Cash Dividends 2352 Dividends Payable 2352 Bad Debt Expense 6000 Allowance for Doubtful Accounts 6000 Depreciation Expense u W 2750 Accumulated Depreciation-Buildings 2750 Depreciation Expense 2880 Accumulated Depreciation Equipment 8. Rent Expense 5700 Unearned Rent Revenue 9. Interest Expense Interest Payable LIETOTT LINK TOTAL amber 31, 2020 Debit Credit ME Cash 87420 Accounts Receivable 60000 Inventory 22500 billi Land 64900 Buildings 88500 Equipment 32000 Allowance for Doubtful Accounts Accumulated Depreciation-Buildings 30250 Accumulated Depreciation Equipment 18680 Treasury Stock 14720 X Cash Dividends Sales Revenue Rent Revenue Bad Debt Expense 5570 Juddddd ODUUUUUUUU Interest Expense 4400 Cost of Goods Sold 398000 Depreciation Expense Other Operating Expenses 37400 Salaries and Wages Expense 66400 Retained Earnings 89570 SHERIDAN CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020 EILE ELE Retained Earnings, January 1 $ Net Income ! (Loss) C D 100 HELE Retained Earnings December 31 LINK TO TEXT LINK TO TY Income Statement For the Year Ended December 31, 2020 Sales Revenue Cost of Goods Sold Gross Profit / (Loss) Operating Expenses Salaries and Wages Expense 3 Other Operating Expenses Depreciation Expense X Total Onerating Expenses O X Income From Operations Other Revenues and Gains Rent Revenue Other Expenses and Losses Interest Expense EMCO Net Income (Loss) LINK TO TEXT LINK TO TEXT SHERIDAN CORPORATION Balance Sheet x December 31, 2020 Assets IX 00 ODD 1 lx $ Liabilities and Stockh Jers' Equity 0 0 Od lllll $ CALCU 6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $6,000. 7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,200. 8. The unearned rent was collected on October 1, 2020. It was receipt of 4 months' rent in advance (October 1, 2020 through January 31, 20. 9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or reco (Ignore income taxes.) Your answer is partially correct. Try again. Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount No. Account Titles and Explanati, Debit Credit 1. Cash 21000 Preferred Stock 20000 Paid-in Capital in Excess of Par-Preferred Stock 1000 2. Cash 124000 Common Stock 10000 OULUN HELL Cash Dividends 2352 Dividends Payable 2352 Bad Debt Expense 6000 Allowance for Doubtful Accounts 6000 Depreciation Expense u W 2750 Accumulated Depreciation-Buildings 2750 Depreciation Expense 2880 Accumulated Depreciation Equipment 8. Rent Expense 5700 Unearned Rent Revenue 9. Interest Expense Interest Payable LIETOTT LINK TOTAL amber 31, 2020 Debit Credit ME Cash 87420 Accounts Receivable 60000 Inventory 22500 billi Land 64900 Buildings 88500 Equipment 32000 Allowance for Doubtful Accounts Accumulated Depreciation-Buildings 30250 Accumulated Depreciation Equipment 18680 Treasury Stock 14720 X Cash Dividends Sales Revenue Rent Revenue Bad Debt Expense 5570 Juddddd ODUUUUUUUU Interest Expense 4400 Cost of Goods Sold 398000 Depreciation Expense Other Operating Expenses 37400 Salaries and Wages Expense 66400 Retained Earnings 89570 SHERIDAN CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020 EILE ELE Retained Earnings, January 1 $ Net Income ! (Loss) C D 100 HELE Retained Earnings December 31 LINK TO TEXT LINK TO TY Income Statement For the Year Ended December 31, 2020 Sales Revenue Cost of Goods Sold Gross Profit / (Loss) Operating Expenses Salaries and Wages Expense 3 Other Operating Expenses Depreciation Expense X Total Onerating Expenses O X Income From Operations Other Revenues and Gains Rent Revenue Other Expenses and Losses Interest Expense EMCO Net Income (Loss) LINK TO TEXT LINK TO TEXT SHERIDAN CORPORATION Balance Sheet x December 31, 2020 Assets IX 00 ODD 1 lx $ Liabilities and Stockh Jers' Equity 0 0 Od lllll $